As an illustration of the changing nature of the British establishment, it could scarcely have been more stark.

Two colourful businessmen better known for their bumptiousness and their billions than their aristocratic connections yesterday became Her Majesty's latest knights of the realm, in a birthday honours list that dispensed with dusty old diplomats in favour of a populist roster of entertainers, TV stars and fashion designers.

Easygroup chairman Stelios Haji-Ioannou, the jolly Greek giant of cheap flights, cheap internet cafes, cheap car rental and more besides, pronounced himself "surprised" to be named Sir Stelios at just 39. "I'm not sure at this stage that I deserve an honour which is usually reserved for those with a lifetime of business achievement," he said, adding that he wanted to accept the award in the spirit of entrepreneurship.

There was no such modesty, however, from Sir Philip Green, the billionaire owner of the Arcadia retail group, which includes Bhs, Topshop and Burton. The wheeler-dealing entrepreneur, whose £5bn fortune makes him one of Britain's richest men, described his elevation as "nice for me and the family", adding: "I absolutely welcome it - why not?"

Neither man can exactly be described as a traditional establishment figure. The Greek-born son of a shipping magnate, Sir Stelios founded easyJet, the first of his collection of orange-hued, cheap 'n' cheerful businesses, in 1995 with two leased aircraft and a £5m loan from his father. Eleven years later, it is one of the biggest budget carriers in Europe and his once innovative brand of no-frills, short-haul travel has become the industry standard.

Sir Philip, meanwhile, the son of a Croydon electrical retailer, left school at 16 and began his career selling wholesale shoes and jeans; by the time he was 33, he was a millionaire. Never less than combative in his dealings with business opponents and members of the press, he has been credited with turning around the fortunes of Bhs and making Topshop one of the most successful brands on the high street.

Despite a failed attempt in 2004 to add Marks and Spencer to the stable, he awarded himself a dividend of £1.2bn last year, the biggest pay cheque in corporate history. Her Majesty, in a fit of birthday largesse, overlooked the fact that Monaco resident Sir Philip has elected to live outside her realm for tax reasons.

Others honoured included a string of high profile women working in sectors as diverse as firefighting and handbag design. The TV presenter Esther Rantzen was awarded a CBE for services to young people after establishing the telephone helpline ChildLine, while the ballerina Darcey Bussell picked up the same award.

The world of fashion was also strongly represented, with OBEs for designers Lulu Guinness, who has been described as "the queen of English handbags", and Julien Macdonald.

Macdonald said that he had received congratulatory calls from Renee Zellweger, Shirley Bassey and Kylie Minogue since the news broke.

Wayne and Geraldine Hemingway, founders of the Red or Dead fashion chain, got MBEs, while Joan Burstein, a front-row fixture at international fashion shows, gets a CBE.

From the worlds of film and music, an OBE went to Gurinder Chadha, the British film director best known for Bend It Like Beckham, and an MBE was awarded to the soul singer Beverley Knight, who is also a charity ambassador, including for Christian Aid.

Alice Arthur, a 46-year-old grandmother who has run the fire brigade on a tiny Scottish island for the last 18 years, was awarded an MBE for her work commanding a team of 10 firefighters - including five members of her own family - from a station on Out Skerries in the Shetland Islands.